The AB InBev-SABMiller merger case: methodology and empirical analysis

The aim of this thesis is to investigate the methodology used by the Commission to assess a case of merger between two companies. This paper deals with the acquisition by AB InBev of the company SABMiller, which were both active within the beer market in Europe. The first outcome of this study is to present why it is so important and interesting for firms active in a specified market to merge with firm active in another market. This included a short presentation of the main competitors and a description of the main issues related to the beer market. A second outcome includes an analysis of the methodology used by the Commission to assess the specific case (the AB InBev-SABMiller merger). This implies a presentation of the tools which were available for the commission and how it used them. The third outcome is the investigation of the effect of the acquisition of SABMiller by AB InBev to the other competitors through the conduction of an event study. The aim of this empirical analysis was to perceive the impact of the merger on the competitors (Heineken, Carlsberg, and Molson Coors). A positive impact would say the merger would be anti-competitive as it would higher the profits of the competitors and so their market power. Through our empirical analysis, we founded that, at the time the will to merger has been officially announced by AB InBev, the merger was anti-competitive. We will thus discuss why the Commission decided to accept the merger the 24th of May 2015.